Personal responsibility, self reliance, and mastery— People accept that they are the masters of their own destiny. They make decisions and live with the consequences of that. When a problem needs to be fixed, or an opportunity exploited, they take the initiative to learn the required skills to get it done.

Mental models— they explore their personal mental models to understand the subtle effect they have on their behavior.

Shared vision— The vision of where they want to be in the future is discussed and communicated to all. It provides guidance and energy for the journey ahead.

Team learning— They learn together in teams. This involves a shift from “a spirit of advocacy to a spirit of enquiry”.

Systems Thinking— They look at the whole rather than the parts.

Reasons for unsuccessful Organization

There are many reasons, especially:

Failure to execute by overcoming the four key organizational hurdle

-> Cognitive hurdle

-> Motivational hurdle

-> Resource hurdle

-> Political hurdle

Failure to understand the customer

-> Why do they buy

-> Is there a real need for the product

-> inadequate or incorrect marketing research

Inability to predict environment reaction

-> What will competitors do

Fighting brands

Price wars

-> Will government intervene

Over-estimation of resource competence

-> Can the staff, equipment, and processes handle the new strategy

-> Failure to develop new employee and management skills

Failure to coordinate

-> Reporting and control relationships not adequate

-> Organizational structure not flexible enough

Failure to obtain senior management commitment

-> Failure to get management involved right from the start

-> Failure to obtain sufficient company resources to accomplish task

Failure to obtain employee commitment

-> New strategy not well explained to employees

-> No incentives given to workers to embrace the new strategy

Under-estimation of time requirements

-> No critical path analysis done

Failure to follow the plan

-> No follow through after initial planning

-> No tracking of progress against plan

-> No consequences for above

Failure to manage change

-> Inadequate understanding of the internal resistance to change

-> Lack of vision on the relationships between processes, technology and organization

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